Asset Inventory

Shadow IT security risks: strategies for effective management & governance

juanhernandez@preyhq.com
Juan H.
2024-09-16
0 minute read
Shadow IT security risks: strategies for effective management & governance

Managing Shadow IT means understanding the hidden threats and creating mitigation policies. Not doing so will result in data breaches, compliance issues, and unexpected costs, so companies need to govern and control these unauthorized tools and apps. Having a solid Shadow IT policy will protect your data and ensure compliance

Tackling these risks involves enhancing visibility, educating employees, and using advanced security solutions. Developing a clear governance framework will minimize risks and integrate safe, user-approved tools within the organization.

In this article, we will discuss how to address Shadow IT effectively by adopting best practices and implementing solutions to safeguard IT environments. 

Understanding Shadow IT

Shadow IT is the use of unauthorized technology solutions by employees to solve work-related problems. This practice creates potential security risks and operational challenges for organizations.

Definition and Scope

Shadow IT refers to the use of technology—such as software, hardware, or cloud services—without the formal approval of the IT department. This can include tools like personal email accounts, file-sharing services, or external apps.

But bypassing official channels can lead to big problems like data breaches and compliance violations. Unapproved technology lacks the oversight and security controls that IT has in place so it’s more vulnerable to cyber threats.

Reasons Behind the Use of Shadow IT

Employees use unapproved technology because it’s quicker and more efficient to meet their workflow needs. They may think the tools provided by their company’s IT department are slow, cumbersome or not suitable for the task.

Here are some specific reasons: 

  • Convenience: Employees might find it easier to use tools they are already familiar with, such as consumer-grade apps.
  • Speed: Implementing approved tools through proper channels can take time, which leads workers to find quicker solutions.
  • Flexibility: Shadow IT often offers customizable features that company-approved tools may lack.

Despite these perceived benefits, the unauthorized use of technology can cause severe security risks and operational disruptions if not properly managed.

Shadow IT security risks

Using unapproved technology means big security risks – data loss and leaks, compliance violations, and cyber threats.

Data Loss and Leaks

Unapproved devices and applications can cause data loss. The IT department can’t see or control them, so there’s a gap in data security. Employees can store sensitive data on unapproved platforms, and it’s an accident waiting to happen.

Additionally, these platforms often lack strong encryption and backup mechanisms. In the event of a system failure or unauthorized access, recovering lost data becomes challenging. Companies must know every device and application interacting with their network to minimize such risks.

Compliance Violations

Unapproved IT tools can put the company out of compliance with industry regulations. These include HIPAA, ISO, PCI, and others that require strong data protection. Unmonitored software may not be compliant.

If companies don’t comply with these regulations, it can result in big fines and legal issues. Companies must enforce strict policies to ensure that only compliant tools are used. Regular audits and employee training can help with compliance and minimize risks.

Exposure to Cyber Threats

Shadow IT can make organizations more vulnerable to cyber threats. Since the IT department doesn’t vet these tools, they may have inherent vulnerabilities that cybercriminals can exploit. Unpatched software and outdated security protocols are common issues.

More shadow IT means more entry points for attackers. They can deploy malware, launch phishing attacks, or gain unauthorized access to the network. Continuous monitoring and robust security protocols are essential to stopping those threats.

Ensuring that all digital tools used within an organization are approved and periodically reviewed can significantly reduce the risk of cyber threats. 

Managing Shadow IT

Managing Shadow IT requires identifying unauthorized technologies, implementing control measures, and educating employees. These actions help maintain security and ensure compliance with IT policies.

Identifying Strategies

To handle Shadow IT, start with asset discovery. This involves mapping out all IT assets within the organization. Using asset discovery tools can help you identify unauthorized hardware and software, clearly showing what's being used without approval.

Regular audits and monitoring network traffic can also reveal hidden devices or services. A crucial part of this process is classifying these assets to understand better their potential threats and where they originate. This information is crucial for establishing a strategy.

Implementing Control Measures

Once Shadow IT is identified, implementing control measures becomes essential. This can involve creating and enforcing an IT policy that specifies proper procedures for adopting new technologies.

Cybersecurity technologies, like firewalls and intrusion detection systems, can help block unauthorized access. Employing IT asset management solutions can also help detect and secure non-approved applications, manage the lifecycle of IT assets, ensure compliance, and reduce risks.

Training and Awareness Programs

Educating employees about the risks associated with Shadow IT is vital. Training programs should explain the security threats posed by unauthorized technologies and the importance of following IT policies.

Conducting regular workshops and awareness campaigns can reinforce this knowledge. You can combine the workshops with documentation that provides clear guidelines on how to request and use new technologies to help reduce the occurrence of Shadow IT.

Don’t forget about culture. Encouraging a culture of open communication between IT departments and other employees ensures everyone understands the role and importance of maintaining a secure IT environment.

Shadow IT policy development

Developing a Shadow IT policy allows you to manage unauthorized IT while keeping it secure. This means creating policies and enforcing them.

Creating Comprehensive Policies

Policies should list which technologies and applications are allowed in the organization. Here are some things to help you with that:

  • Start by identifying the existing IT infrastructure and employee needs. This will help you figure out which applications might be used outside the approved list.
  • Update the approved list regularly. Include guidelines for seeking approval for new tools.
  • Policies should cover data handling procedures and compliance requirements to prevent security breaches and compliance.
  • Communicating these policies is key. All employees should know the risks of Shadow IT and how to approve new tools.
  • Clear documentation avoids miscommunication and makes sure everyone is on the same page.

Enforcement Mechanisms

Enforcing Shadow IT policies requires a layered approach:

  • First, implement monitoring tools to detect unauthorized applications.
  • Regular audits will find non-compliance and security risks.
  • Use technical controls like VPNs, encryption and multi-factor authentication to protect data and applications.
  • A Zero Trust security model enforces the principle of least privilege, limiting access to sensitive info.
  • Collaboration with other departments like HR and Legal is key to consistent policy enforcement.
  • Penalties for policy violations, outlined in the policy document, will deter employees from using unapproved tools.
  • Regular training sessions keep the workforce up to date on the latest Shadow IT practices and threats.

Solutions and best practices

  • Providing company-approved tools is key to reducing Shadow IT. This can mean offering cloud storage solutions with proper security instead of letting employees use unauthorized platforms.
  • Encourage the use of recognized collaboration tools like Microsoft Teams or Slack to reduce the need for employees to use unapproved communication methods.
  • When deploying new tools make sure they are user friendly and meet employee needs. If a tool is hard to use employees will turn to Shadow IT.
  • Feedback loops between IT and other teams can help refine the tool selection.

Governance framework

Governance Structure

Creating a governance structure means creating policies and procedures that provide clear guidance on Shadow IT. This includes:

  • Acceptable and unacceptable practices
  • Compliance with legal and security requirements
  • Regular audits

Involve key stakeholders in the creation of these policies so they cover all departments.

Remember to update the framework as threats and technology evolves.

Roles and Responsibilities

This will depend on your organization structure but key roles might be IT admins, department heads and security officers who will enforce policies and address Shadow IT incidents.

IT admins will monitor the network for unauthorized applications and ensure compliance to the guidelines.

Department heads will oversee their team’s compliance to the policy and report any deviations to the IT department.

Security officers will identify risks and vulnerabilities related to Shadow IT.

Assign clear responsibilities so you can be accountable for each department.

Conclusion

Shadow IT is a big security risk to organizations but a solid policy and governance framework can help mitigate that risk.

To sum it up:

  • Monitor cloud environments continuously
  • Give employees approved tools
  • Regular communication and training on IT policies

Establish strong governance frameworks to have accountability and oversight. Doing this can reduce the risks of Shadow IT and have a more secure IT.

FAQs

How do organizations detect and monitor Shadow IT in their infrastructure?

Organizations can use automated tools to scan the network for unauthorized devices or software. Employee surveys and town halls also help identify the unapproved tools employees use for work to create a clear picture of Shadow IT.

What are the implications of Shadow IT to data privacy and compliance?

Shadow IT can lead to data breaches and compliance violations. Unapproved tools may not meet data protection standards and can cause regulatory issues and expose sensitive information or mishandle it.

What can businesses do to reduce the security risks of Shadow IT?

Cybersecurity measures and using cloud services to detect and classify unauthorized devices is key. Regular audits and employee training on compliance can also reduce Shadow IT risks.

How does Shadow IT affect an organization’s overall security stance?

Shadow IT bypasses traditional IT controls and increases security vulnerabilities. This can lead to integration issues and data management inconsistencies, making the organization more vulnerable to attacks.

What should be in a Shadow IT policy to manage these challenges?

A Shadow IT policy should list approved tools and services, procedures for requesting new tools and consequences for non-compliance. Regular policy reviews and updates are also essential to adapt to new risks.

How to integrate Shadow IT to official IT governance frameworks?

Best practices include collaborating with departments to understand their needs, being flexible in IT policies, and having a clear process for approving and monitoring new technologies. Regularly updating the framework will make it effective.

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